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Home My WebLink About2013-10-02 Min - Board REGULAR MEETING October 2, 2013 In accordance with District Code Section 2.08.010, the TDPUD minutes are action only minutes. All Board meetings are recorded on a digital format which is preserved in Perpetuity and made available for listening to any interested party upon their request. The regular meeting of the Board of Directors of the Truckee Donner Public Utility District was called to order at 6:10 PM in the TDPUD Board room by President Bender. ROLL CALL: Directors Joe Aguera, Jeff Bender and Bob Ellis were present. Directors Ron Hemig and Tony Laliotis were absent. PLEDGE OF ALLEGIANCE Director Ellis led the Board and public in the Pledge of Allegiance. EMPLOYEES PRESENT Mark Thomas, Bob Mescher, Brian Wright, Ian Fitzgerald, Stephen Hollabaugh, Michael Holley and Barbara Cahill CONSULTANTS PRESENT Steve Gross OTHERS PRESENT Jennifer Thomas and Ryan Thomas CHANGES TO THE AGENDA General Manager Holley said there were no changes to the agenda. PUBLIC INPUT There was no public input. DIRECTOR UPDATE Director Ellis attended the Northern California Power Agency (NCPA) conference at Squaw Creek. There were many speakers on various subjects regarding the energy industry. Director Aguera also went to some NCPA conference seminars and classes. There was a lot of information on the electric industry. Attendees all seem to have the same questions and problems. Projects are difficult to complete when things are always changing and the out- come is unknown. Director Laliotis asked President Bender to relay his thanks to the District for holding the Ta- hoe Donner Neighborhood block party. CONSENT CALENDAR CONSIDERATION OF THE PURCHASE OF A VIRTUAL DESKTOP SYSTEM The item involves virtualization of District staff desktop computers. 1 Minutes: October 2, 2013 CONSIDERATION OF AN UPDATE TO THE TDPUD'S "RENEWABLE ENERGY RESOURCES PROCUREMENT PLAN" This item involves an update to the TDPUD's "Renewable Energy Re- sources Procurement Plan". Director Aguera moved, and Director Ellis seconded, that the Board approve the consent cal- endar. ROLL CALL: Directors Hemig and Laliotis were absent; all other Directors aye, by voice vote. SO MOVED ACTION ITEMS CONSIDERATION OF A RESOLUTION TO COMMEND VERN SMITH FOR HIS MANY YEARS OF SERVICE This item involves adopting a Resolution for Vern Smith. Director Ellis moved, and Director Aguera seconded, that the Board adopt the resolution rec- ognizing Vern Smith for his many years of service. ROLL CALL: Directors Hemig and Laliotis were absent; all other Directors aye, by voice vote. SO MOVED CONSIDERATION OF A RESOLUTION TO COMMEND MARK THOMAS FOR HIS MANY YEARS OF SERVICE This item involves adopting a Resolution for Mark Thomas. Director Aguera moved, and Director Ellis seconded, that the Board adopt the resolution rec- ognizing Mark Thomas for his many years of service. ROLL CALL: Directors Hemig and Lali- otis were absent; all other Directors aye, by voice vote. SO MOVED BUDGET FY14 and FY15 Budget Presentations: (A) Operating/Capital Budget: Electric Operations (B) Operating/Capital Budget: Water Operations Bob Mescher gave a presentation: • Budget Process Schedule o September 4 — Mission, goals and objectives — Budget assumptions — Organization chart — Labor — Existing debt o September 18 — Purchased Power Plan — RPS definition change by CEC — Overview of Prop 18 process o October 2 (tonight) — Electric and Water operational and capital budgets o October 16 — Support services operational and capital budgets — Revenue, rates, fees and charges — Financial Master Plan — Electric and Water reserves — Set public hearing date for budget 2 Minutes: October 2, 2013 L m i O C) O o i Vol N c- c" N tu rV N Ln -a r L +� y (U +..O � C : O Q �O off$ a O� O U a) cn O LL . � "a 0 � 4O LL LL. 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E E Q C =, w t O O U (U S= CU O O u LC� v u C S= U w N c' V Q OO Z I I I I I Z LL I U) QZZZW69- W WOO co o cn co U a a O O O O D O 0 0 0 0 0 0 0 0 0 0 0 Ch • Electric Department o Electric Utility revenue F` • — No rate increase — Budgeted demand flat in FY14; 1% increase in FYI — Reorganization of Power Supply/GIS departmental expenses — Department name changed to IT/GIS department — All District IT costs and responsibilities consolidated into one department — Provides for better management of IT resources — The 2013 budget and actuals normalized to account for these changes o Electric Operations — System maintenance — Tree trimming — High level of RPS o Electric Capital Projects — Master Plan — SCADA Reliability Improvement — Donner Lake Substation — New construction anticipated to increase compared to recent years • Electric Department: Comparison of FYI 3, FY14 & FYI Budgets (in thousands of dollars) Budgets %Variance FY14 FY15 VS. vs. FYI FY14 FY15 FY13 FY14 Operating Expenses $3,134 $3,269 $3,409 4% 4% Maintenance Expenses 468 459 483 -2% 5% Total O&M Expenses $3,602 $3,728 $3,892 3% 4% Capital Expenditures 2,675 2,565 2,636 -4% 3% Total Department Expenditures $6,277 $6,293 $6,528 0% 4% • Electric Department Capital Projects & Equipment (in thousands of dollars) FY14 FYI Rate Funded Electric Master Plan Projects $ 484 $ 563 Upgrade Donner Lake Substation 348 899 SCADA Security 202 - Routine Replacements Poles, Reclosures, Regulators, Transformers, Meters 240 250 Distribution Replacements & Improvements 396 418 Line & Extension Upgrades 264 278 Various District Projects 152 160 Total Rate Funded Projects $ 2,086 $ 2,568 Replacement Vehicles funded by Vehicle Reserve $ 479 $ 68 Total Electric Projects $ 2,565 $ 2,636 4 Minutes: October 2, 2013 • Water Department o Water Utility revenue requirements — Estimated water rate annual increase of 3% in FY14 & FY15 — Budgeted demand 1% annual increase in FY14 & FY15 o Water Operations — No new employees — Reduced energy costs for pumping due to increased efficiencies and pipeline re- placement — Some operational labor shifted to capital projects — Water Capital Projects — Pipeline replacement — Donner view replacement — Pump station replacement — Water meter installations • Water Department Comparison of FYI 3, FY14 & FYI Budgets (in thousands of dollars) Budgets %Variance FY14 FY15 vs. vs. FY13 FY14 FY15 FY13 FY14 Operating Expenses $2,261 $2,320 $2,383 3% 3% E Energy Costs 1 ,474 1 ,306 1 ,307 -11% 0% Maintenance Expenses 1,410 1 ,405 1,440 0% 2% Total O&M Expenses $5,145 $5,031 $5,130 -2% 2% Capital Expenditures 1,575 1 ,873 1 ,267 19% -48% Total Department Expenditures $6,720 $6,904 $6,397 3% -8% • Water Department Capital Projects & Equipment (in thousands of dollars) FY14 FY15 Rate Funded Pipeline Replacement $ 1,209 $ 421 Donner View Replacement 156 - Misc Facility Renovation 65 - Pump Station Replacement - 300 Total Rate Funded Projects $ 1,430 $ 721 Water Meters Funded by Water Meter Surcharge $ 395 $ 450 r Replacement Vehicles funded by Vehicle Reserve $ 48 $ 96 Total Water Projects $ 1,873 $ 1,267 5 Minutes: October 2, 2013 There was no public input. Board discussion: • Does the District anticipate adding new debt for projects? • Electric debt is now at 4% and water debt is at 16%- where will we be in two years? • In 2014, will rate funds be used for projects or will they use reserves? • Look forward to the next meeting where there will be more budget detail to clarify things. • FY15 rate funded project is a surprise- but the average over the next two years is $1 million per year. • Solid plan • Thank-you ROUTINE BUSINESS TREASURER'S REPORT Approval of the fund balances as of August 31, 2013: Director Aguera moved, and Di- rector Ellis seconded, that the Board approve the treasurer's report for the month ended Au- gust 31, 2013. ROLL CALL: Directors Hemig and Laliotis were absent; all other Directors aye, by voice vote. SO MOVED Approval of disbursements for September 2013 Director Aguera moved, and Director Ellis seconded, that the Board approve the September 2013 disbursements report. ROLL CALL: Directors Hemig and Laliotis were absent; all other Directors aye, by voice vote. SO MOVED APPROVAL OF MINUTES FOR SEPTEMBER 4 and 18, 2013 Director Ellis moved, and Di- rector Aguera seconded, that the Board approve the minutes of September 4 and 18, 2013. ROLL CALL: Directors Hemig and Laliotis were absent; all other Directors aye, by voice vote. SO MOVED CLOSED SESSION CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(D)(4), CONFERENCE WITH LEGAL COUNSEL ON DECIDING WHETHER TO INITIATE LITIGATION: ONE CASE PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOVERNMENT CODE SECTION 54957 (E): GENERAL MANAGER PERFORMANCE PLAN REVIEW RETURN TO OPEN SESSION Report from Closed Session There was no reportable action. ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 7:45 TRU D R BLIC UTILITY DISTRICT f Jeff a President Prepared by :° W'` Barbara CahiW, Deputy District Clerk 6 Minutes: October 2, 2013 TRUCKEE DO Resolution No. 2013 - 21 Public Utility District Commending Mark Thomas For His Professionalism and Dedication WHEREAS, Mark Thomas has been the Water Superintendent of this District since January 16, 2002; and WHEREAS, Mark has overseen water system conversions for Donner Lake and Glenshire Water; and WHEREAS, Mark has administered well station rebuilds, tank rehabilitations, water tank installations, booster station replacements, well drilling, and resolved arsenic issues; and WHEREAS, during his nearly twelve.years of employment at the District, Mark has demonstrated a superior work ethic, pride in doing a job completely and dedication of service to the community; and WHEREAS, Mark has been a highly respected manager of the District's Water Crews and his advice has been valued by District management throughout his career; and WHEREAS, Mark's ethical behavior has established a standard that will guide District staff for years to come; and WHEREAS, Mark has contributed to the success of the District in many ways; and WHEREAS, Mark has earned the admiration of his fellow employees and of this Board; and WHEREAS, Mark has announced his retirement to be effective on October 8, 2013; and WHEREAS, the Board of Directors wishes to express its appreciation and gratitude for the performance of Mark Thomas and for his many years of service to the District and our customers. NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DISTRICT THAT: • Mark and Jennifer Thomas have the best of luck and happiness in retirement; and • Mark Thomas be commended for his invaluable contribution to the success of the Truckee Donner PUD, for his work ethic which stands as a model for others to emulate and for the friendship we continue to share with him. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the second day of October 2013 by the following roll call vote: AYES: Directors Aguera, Bender and Ellis, NOES: None ABSENT: Directors Hemig and Laliotis TRU BLIC UTILITY DISTRICT f Jeff Be d r, President ATTEST: Michael D. Holley, District Clerk TRUCKEE DONNER Resolution No. 2013 - 22 PublicUtility District Commending Vern Smith For His Professionalism and Dedication WHEREAS Vern Smith has been an employee of this District since September 2, 1997; and WHEREAS, during his sixteen years of employment at the District, Vern has demonstrated a superior work ethic, pride in doing a job completely and dedication to service to the community; and WHEREAS, Vern has been a highly respected employee in the District's Electric, Water and Customer Service Departments and his advice has been valued by District management throughout his career; and WHEREAS, Vern's ethical behavior and mentoring has established a standard that will guide District staff for years to come; and WHEREAS, Vern has contributed to the success of the District's upgrades of several substations in modernization, communication and reliability; and WHEREAS, Vern has been a vital committee member of the Electric Utility Service Entry Requirements Committee (EUSERC), a national organization focusing on electric meter panel specifications; and WHEREAS, Vern has announced his retirement to be effective on November 1, 2013; and WHEREAS,the Board of Directors wishes to express its appreciation and gratitude for the performance of Vern Smith, NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DISTRICT THAT: • Vern and Linda have the best of times and happiness in retirement; and • Vern Smith be commended for his invaluable contribution to the success of the Truckee Donner PUD, for his work ethic which stands as a model for others to emulate and for the friendship we continue to share with him. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the second day of October 2013 by the following roll call vote: AYES: Directors Aguera, Bender and Ellis, NOES: None ABSENT: Directors Hemig and Laliotis TM=LIC UTILITY DISTRICT Jeff eB n er, President ATTEST: Michael D. Holley, District Clerk